Deutsche CEO: We're rock-solid

John Cryan, who took over last year, told employees that Deutsche is “absolutely rock solid”.

Last week, at one of our scheduled off-sites, the Management Board talked about progress on our strategy, and how recent market volatility and forecasts for slowing economic growth might impact our clients and us. Volatility in the fourth quarter impacted the earnings of most major banks, especially those in Europe, and clients may ask you about how the market-wide volatility is impacting Deutsche Bank.

You can tell them that Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position. On Monday, we took advantage of this strength to reassure the market of our capacity and commitment to pay coupons to investors who hold our Additional Tier 1 capital. This type of instrument has been the subject of recent market concern.

The market also expressed some concern about the adequacy of our legal provisions but I don’t share that concern. We will almost certainly have to add to our legal provisions this year but this is already accounted for in our financial plan.

Cryan also explains how he wants to turn Deutsche into “a trusted and successful bank”.

Macris claims it’s a “major climbdown” by the regulator, becausethe FCA has belatedly accepted that he never intentionally misled them.

He declares:

The Final Notice issued to JP Morgan by the FCA in 2013 wrongly and unfairly accused me of deliberately misleading the FSA. That Notice was released to the public without the FCA ever having properly heard my side of the story. Today the FCA has finally accepted that this allegation against me was utterly wrong.

Today’s result also vindicates my actions in bringing my third party reference seeking to have this allegation removed from the JP Morgan Notice. The FCA demonstrated a total disregard for my rights as an individual in its haste to issue the JP Morgan Notice and impose a large fine on the firm.

Macris is also taking his case to the Supreme Court, and wants the FCA to expunge that original Notice.

The FCA has had several opportunities to admit its mistakes, but instead, at every turn, it has until now sought to defend and justify its position, wasting public funds.

Some investors are losing faith in Greece’s ability to implement its third bailout and get debt relief.

Talks with its creditors over pensions reforms are bogged down, farmers are blockading roads to demonstrate against austerity, and exporters are suffering from the capital controls imposed last summer.

Former JP Morgan banker fined over London Whale

The banking sector likes to argue that it has mended its ways since the financial crisis struck. Critics aren’t convinced.

So it’s worth noting that Britain’s City watchdog has just slapped a £792,900 fine on a former senior JP Morgan banker, over one of the biggest scandals of recent years.

Achilles Macris, the ex head of CIO International for JPMorgan Chase Bank, has been sanctioned for failing to be “open and co-operative” with regulators over the “London Whale trades” which ultimately cost them £13bn.

Katie Martin (@katie_martin_fx)

"FCA fines former Head of JP Morgan’s CIO International £792,900 for failing to be open and co-operative."

This made it harder for the FCA to judge the situation, and also made it harder for more junior staff to be open and cooperative.

Mark Steward, director of enforcement and market oversight at the FCA, says:

‘A failure to communicate openly with us can affect the well-running of markets and cause unnecessary harm to investors, especially in times of financial stress or crisis.

Regulators need open communication with firms so that better decisions can be made sooner. Mr Macris should have explained the position more squarely especially when he knew the Synthetic Credit Portfolio’s losses had worsened.’

What a shame that the review in to Britain’s banking culture has been shelved....

Yield is the interest rate on a bond. A high yield means a bond is riskier, while safe-haven assets yield less.

Short-term German and Japanese bonds have been negative for a while, reflecting the fact that they’re a solid place to put your money (especially as there are negative interest rates in Japan and the eurozone).

But for a 10-year bond to be negative? That shows investors are pricing in weak economic growth, and turmoil, for some time.